-8- -7- Suggested time: 45 minutes Maximum score: 120 points Ending Inventory (December 31, 2007) $26,000 The following transactions took place during 2007: The trial balance of Golden Limited as at 1 January 2007 is shown below: Accoun A¢ ount No 110 110 110 ca -Be d Investments ccounts Receivable 1108 110 1110 200 01 2202 --2203 3300 3301 -4400 401 5500 501 5502 5503 i504 5O5 5O6 $ $ [nt :re---st Receivable -] ÿntory * ding** Payments: Accounts Payable $15,000; Notes Payable $27,000; Income Taxes Payable $8,000; Operating Expenses $42,000 , 30,000 4. 900 Credit sales $104,000 Inventory purchased $36,000 $22,000 purchased on credit (assume …show more content…
Financial statements issued by entities, in both the private and public sectors, are reasonable conclusions on which to base the audit opinions. The reliability of audit used by various parties to evaluate, amongst other things, the entity's financial evidence is influenced by its source and by its nature and depends on the individual performance and position. These reports are the main means by which the management circumstances under which it is obtained. communicates information about the entity to the users of these reports. Briefly describe five audit procedures to obtain audit evidence; give examples and the There are, however, limitations of the reporting process that affect the usefulness of degree of reliance on evidence gathered. the financial statements. Please provide five limitations of the financial statements Begin writing your answer to Essay C on page 25 of the answer booklet. presentation. Begin writing your answer to question 1 on page 31 of the answer booklet. Suggested time: 10 minutes Maximum score: 30 points 2. For each of
1.What are conversion factors? Why were conversion factors developed? How do they impact on which bond is cheapest to deliver? Under what conditions would there be no cheapest to deliver? Explain in detail.
a Additional Sec. 263A costs of $7,000 for the current year are included in other costs.
Macy’s, Inc. is known as the Great American Department Store was established in 1858 and now has 810 stores operating in the United States, coast-to-coast. Macy’s stores nationwide are grouped into 69 geographic districts that average ten to twelve stores each. Most stores are located at urban or suburban areas. As of January 30, 2010, the Company’s operations were conducted through four retail operating divisions – Macy’s, macys.com, Bloomingdale’s, and bloomingdales.com. The Company is a retail organization operating retail stores and Internet websites under two brands (Macy’s and Bloomingdale’s) that sell a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other
This analysis contains references to years 2010 and 2009 for Dollar General Corporation, which represent fiscal years ended January 28, 2011 and January 29, 2010 respectively. The main issues which the company is concerned about are its ability to increase sales and profitability and reduce costs in the current economic situation; another issue is an ability to repay an extensive amount of long-term debt which increases its risks.
a.) General Mills makes money through producing various food products and distributing them all over the world.
There is no doubt that the contribution of each of the group members is equal.
1. Analyze the changes that Al Dunlap had initiated at Sunbeam after being hired from a strategic perspective. Did the changes started by Dunlap allow him opportunities to manage earnings?
The case study General Mills Inc. - Understanding Financial Statements focuses on the most basic idea of finance analysis. This case is a brief look into the language that is used in the finance world and a start to interaction with auditors. In this case, KPMG LLP, the public accounting firm that was auditing their statements, had sent two opinion letters. The first letter was ensuring that both parties were aware that General Mills had internal control over financial reporting. The second opinion letter stated that to auditor’s knowledge, General Mills had correctly reported its financial statements. The statements given in this case study are known as the four general financial statements. Displayed in the case are the
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 76 years. General Motors was founded 1908, in Flint, Michigan and currently employs approximately 284,000 people around the world. GM's global headquarters is the Renaissance Center located in Detroit, Michigan, USA, They currently manufacture their cars and trucks in 35 different countries. Its European headquarters are based in Zurich, Switzerland, and its Holden headquarters are located in Melbourne, Victoria, Australia. In 2007, 9.37 million GM cars and trucks were produced globally under the following 12 brands: Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn and
This paper examines financial ratio analysis by defining, the three groups of stakeholders that use financial ratios, the five different kinds of ratios used and their applications, the analytical tools used in analysis, and finally financial ratio analysis limitations and benefits.
Balance sheets and income statements are a snapshot of a company’s stability and financial situation. Combined the statements show the income, expenses, and stockholder’s equity in the company. These statements are often analyzed by financial institutions when a company comes to them needing a loan. Stockholders and other investors also look at these statements to make sure their investment will return a profit for them. This paper will look at four different companies and their balance sheets and income statements. The companies are Eastman Chemical Company, Covenant Transportation
The course project involved developing a great depth of knowledge in analyzing capital structure, theories behind it, and its risks and issues. Before I began this assignment, I knew nothing but a few things about capital structure from previous unit weeks; however, it was not until this course’s final project that came along with opening
Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values.
The balance sheet and Income statement are the most important financial statements of the company that help conduct current analysis of company and evaluate its trends overtime. The balance sheet represents the company snapshots of its financial position on the last days of accounting period. Apple balance sheets, which represent a snapshot of its ending balances in asset, liability and equity account as of the date stated on the report, are changes each year from 2003 to 2014. On the other hand, the income statement shows its financial performance over 2003 to 2014. Apple basically ends its accounting period in September. Most of the long-term debts are in the form of the bonds. According to appleinsider.com, Apple recently issues a new euro bond worth about $2.26 billion with a maturity date on January 17, 2024 and coupon rate of 1.375% payable annually. The first payment will occur on January 17, 2016. Moody’s recently assigned a rating of Aa to Apple Inc. 's senior unsecured note issuance. Thus, Apple recent capital expenditure amount to 11,488 million according to morningstar.com. The analysis of financial statements is conduct to compare Apple with one of its closest rival Hewlett-Packard and twelve ratio were calculated. From table1 and chart1, the current ratio that determine the company ability to meet its short term obligation shows Apple’s current ratio is higher than that of Hewlett-Package from 2003 to 2014. That is, Apple is solvent than Hewlett Packard. Table
Most corporate financing decisions in practice reduce to a choice between debt and equity. The finance manager wishing to fund a new project, but reluctant to cut dividends or to make a rights issue, which leads to the decision of borrowing options. The issue with regards to shareholder objectives being met by the management in making financing decisions has come to become a major issue of recent times. This relates to understanding the concept of the agency problem. It deals with the separation of ownership and control of an organisation within a financial context. The financial manager can raise long-term funds internally, from the company’s cash flow, or externally, via the capital market, the market for funds